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Government announces double digit Fuel Increase

Government announces double digit Fuel Increase

The Energy and Petroleum Regulatory Authority (EPRA) has this evening revised upwards the prices of fuel triggering a last minute rush by motorists to take advantage of the last minute low prices that have prevailed since the covid 19 lock-down was imposed.

As a result of the price increases, super petrol will now retail at Ksh.100 from the current price of  Ksh.89, 90 while diesel and kerosene will retail at Ksh.91 and Ksh.65 respectively. In Mombasa, the three will retail at Ksh.98, Ksh.89 and Ksh. 63 in that order.

According to EPRA Press Release, the prices include the revised rates for Petroleum Development Levy on Super Petrol and Diesel as per Legal Notice No. 124 of 10th July 2020 and 8% Value Added Tax (VAT) in line with the Finance Act 2018 and the Tax Laws (Amendment) Act 2020.

EPRA attributes the prices to the average landed cost of imported super petrol increasing by 12.64 percent from $248.21 per cubic metre in May 2020 to $279.58 per cubic metre in June 2020. The new prices are a big blow to motorists, manufacturers and households who will have to pay more to access petroleum products.

A look at the Global Fuel Price Review published on 5th July 2020, the past week has seen crude oil prices going back to the upward trend driven by hopes for market recovery after the COVID-19 loses. The world average retail prices of gasoline and diesel remained stable at levels of 0.93 USD and 0.84 USD per litter respectively.

Price increases has been seen India, Pakistan and in Europe where the average gasoline price was 1.31 USD per liter marking a 0.7% increase compared with the previous week. Gasoline prices also went up by 1.7% in Asia, by 1.2% in Africa, by 0.6% in South America, and by 0.1% in the USA.

Download the Full Press Release HERE.

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